North Carolina Down Payment Support Programs

Online Merchant account - The North Carolina Housing Finance Agency got two great plans for first-time Home Buyers. These systems will be the Mortgage Credit Certificate as well as the Down Payment Assistance Program.

You also buy a house between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of those programs, you could also qualify for the $8,000 tax credit merely enacted into law.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a house within the past three years. That is exactly the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further.

If you qualify for the MCC, it is possible to claim 20% of the interest you pay as a credit on your own federal income taxes on your mortgage. It's possible for you to save up to $2,000 on your taxes.

You may have the ability to combine this, should you qualify for 2009. This might reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income and the price of the property you are buying. Household income means the “gross income of the mortgagor and any individual anticipated to live in the dwelling who's 18 years old or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limits 1 Person $61,500 2 Individuals $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing prices might be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The purchaser just has to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This plan has more stringent income limits than the MCC program outlined above. Like the MCC program, it can be utilized along with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit help, nonetheless, can not be utilized along with the MCC. This really is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Persons $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New House $210,000 Existing Home $210,000